Financial Review

To the Dogs


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…Stocks muddle into earnings. IMF goes risk off. Powell to speak. Retail sales bounce. Netflix disappoints. BofA goes mobile. Amazon crashes, with dogs. Trump-Putin summit also a pretty spectacular crash. Financial Review by Sinclair Noe for 07-18-2018 DOW + 44 = 25,064 SPX – 2 = 2798 NAS – 20 = 7805 RUT – 8 = 1678 10 Y + .03 = 2.86 OIL – 3.06 = 67.95 GOLD – 80 = 1241.20   For most of the session the Dow Industrials barely managed to stay in positive territory, while the S&P 500 and the Nasdaq couldn’t quite claw their way out of negative territory.   Of the 30 S&P companies that have reported earnings through Friday, 86.7 percent have topped earnings expectations, above the 75-percent average of the past four quarters. That sounds like a strong start to earnings season, yet stocks were flopping around like a fish out of water. You might wonder if earnings are enough to lift stocks out of their trading range. The market appears to increasingly focus on the sustainability of growth; and with future comparisons getting harder, economic growth due to slow in the second half of the year, the dollar tail wind to EPS dissipating, and commodity and operating costs moving higher, the current level of growth boosted by a one-time tax benefit is likely to fall significantly. Also consider that the Dow and the S&P are still in correction territory, unable to break above the January-February highs, and the risk-reward seems ...
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Financial ReviewBy Sinclair Noe